tv Varney Company FOX Business January 10, 2019 9:00am-12:00pm EST
of those -- >> again, you just say something and pulls it out of well you know where -- mike bloc thank you so much suzanne lee great to see you james freeing man see i didn't say it. stuart varney take it away. >> i shall dagen good morning everyone. all right. crunch time for the government shutdown crunch time for the wall could it be there's a way out of the impasse? in my opinion job yes there is. the president could declare a national emergency he appears close to doing just is that he told reporters, quote, i have the absolute right to do national emergency if i want and he went on, my threshold will be if i can't make a deal with with people that are unreasonable. he couldn't make a deal with senator schumer and speaker pelosi. the government is still shutdown, the national emergency option is on the table. today, the president heads to the border to see the crisis firsthand. he leaves the white house shortly. he may speak to reporters.
you'll see it -- now this. the market up four straight days of gains. the doug up 1200 point, and this morning, we will open a little lower. no significant developments on china trade or the federal reserve to move the markets so far today. and now it's out there, now this. the back story on the bezos divorce, and national inquirer claims jeff bezos was having an affair and that he announced divorce only when he knew the inquirer was about to public revealing photographs. investors want to know, what happened to bezos's 16% stake in amazon does mckenzie get half had and if she does, what will she do with the power? this is going it be a big day, "varney & company" is about to begin.
>> walked out, again we with saw a temper tantrum because we couldn't get his way he sort of slammed the table. he said it was a waste of his time. >> well president walked into the room passed out the candy. [laughter] it was true. i don't -- i don't recall him ever raising his voice or slamming his hand. >> call that a contradiction. senator, schumer vpght pence, though, talking about the impasse et cetera, et cetera all of. now look at a this this is a trump tweet crying chuck told his favorite lie when he used his standard soundbite that i, quote, slammed the table and walked out of the room he had a temper tantrum end quote because i knew he would say that. an after nancy said no to proper border security i politely said bye-bye and left. no slamming. it is time we brought in the judge anthony napolitano with us. >> not a witness --
[laughter] okay. let's -- does the president have the power to declare a state of emergency on the border? >> yes. >> he does. unequivocal? >> he has to comply with national emergency act of 1976 basically mean it is that there is a -- crisis, a threat to life, property or safety that cannot be addressed by the movement of ordinary government assets or the exercise of ordinary government power so he needs some extraordinary streamline power. if your next question is, can he build the wall? under this emergency power, the answer is no. he can not spend a nickel that hasn't been authorized by the congress. >> can't he take some out of this pot of money here for the military and put it into the qawl? >> no. >> money from column a which has been budgeted put it in column b which was not an issue at the time they budgeted a, answer no he has to go back to congress. how do we know that? because president trying man try ared that in 1952 when steele
industries on strike 500,000 members united steel workers of america went on strike at the height of the government war with and couldn't get military equipment to korea supreme court said only can do it. only problem this will appeal to property owner instinct in you, vast majority of where he wants to build the wall is on dirt unowned by the government. they have to condemn that property under eminent domain and enter private property against the will of the owner without paying for the property? no. >> so he can declare a state of emergency, but he can't use that emergency to twal build the wall. second question, this is my question okay not yours. my question -- [laughter] they're going to go to court on this. >> court in california. in california -- oh he loses. >> why do they go to california? >> ninth circuit doesn't matter
where they go to court but going to court immediately and immediately, a judge will enjoin the government from constructing the wall or spending money that hasn't been authorized. >> how long will that injunction last if that takes normal route two years if it is appealed and supreme court takes appeal, we could get an answer from the supreme court by june. but in my opinion that is the least it would last is to june. question, is there a bona fide emergency or an negotiating tech technique he tipped his hand you said this in your opening, i'm going to declare anen emergency because i'm dealing with unreasonable people. that is not a legal basis for the declaration of national emergency. >> okay. it is, though, a way out of the up pass. it is a political way out of the impasse doesn't fly legally but the optics stuart he's bringing the white house legal team -- to texas with him today. are the optics going to be
standing where he want it is to build the wall he's going it sign the emergency dleargs? those optics would be spectacular doesn't work legally but it is dynamite. it goes to ninth sir cult and ninth circuit will say we don't like you plpght you can't do it whereabout a lot of country will be on his side. politically -- >> i haven't seen polls but he's been saying for weeks that most of the country is on his side i don't know the answer to that but more concerned about legal implications than mrs. pelosi and poll reaction. >> buzz a single judge with a pen can stop all of this. >> this is not about legalism or the court not about legality it's about politics. come on -- if the result of this national emergency declaration is a compromise from congress, that would be absolutely valid congress can spend all of the money tpghts we know that spend a trillion years that they don't have. but if the result of this national emergency is a
stalemate because of an injunction by the court, we're back to square one. however, he has bragging rights he can say, i did what i could up to that i'm elected black, obama pointed judge i can hear him now, and government reopens. because he can sign a spending bill whether it contains money for the wall or not. because his money is tied by courts on wall so some obama appointed judge might actually do the president a favor. >> you've got it. [laughter] round and round and round. only america. see you again soon. thank you very much indeed. we've grot to look at the futures because -- okay we've got to be down just a little bit on the stock market this morning but remember, this follows four dane p -- gains four days of pretty good gains individual stocks look at this. bed bath and yongd a rosy forecast stock is up 6%. now it has been beaten down recently but that's nice. high per profit at kb home, that company expects to increase the
number of homes it builds this year. it is up 3%. look at macy's. they slash their output for profit and sales, citing weaker sales in late december look at that what macy's down 17%. target, different story. sales rose almost 6% over the holiday period, more on that after the opening bell. don't think we've got a quote on target but i -- yes we do. why is it down 3%? don't get it. but we'll figure it out for you. stay on your money come on in market watcher, hans olson with fiduciary trust we start the profit reporting season i've seen expectations if you like expectations but they're saying they're going to be up 16.compared to last year. what's your number? >> well, i think, with stuart first of all good morning, i think that numbers probably going to come in in the the -- lower teens. expectations of some companies that have already reported then
closer to 11%. so i think somewhere between 11, 12, 13% is where we'll ultimately land. stuart: is that good enough to keep this rally going? >> i think for the most part yes when you look at both earnings, earnings expectations for 2019 and the overall tone and tenner of the economy enough to keep it moving in the right direction. stuart: when you say the right direction you mean are we going to have a nice move up frommer here? we're just shy of what the 24,000 mark nice move up from here? >> i think -- investors should expect for 2019 in terms of market returns are large cap u.s. stock. somewhere on the order of 7 to 8% price return throw in a couple of percent on dividend near close to 9, 10% there. >> now this is the time of year when our viewers and anybody else with the 401(k) gets to
decide where that 401(k) mention money where it goes. stocks, bonds, cash or mixture are you suggesting that stocks are the place to go to and stay in? >> you know, yes. is the short answer, and it has been evolving over the last month as a you would guess. given the remarkable pullback in u.s. equities. you've asked me this question a month ago and i would have had a different answer. right now with the u.s. market trading at the roughly 14 times earnings, forward earnings and earnings grow somewhere on order of 6, 6 president 5% it is u.s. large cap companies are probably the best place for american investors to put money now. : that's why we like you because you answer the question directly. you know isn't that a wonderful thing. how many people are wall street give you a straight answer? hans olson does and we love it you sir, if you're not careful will be back. thank you very much indeed hans good to see you. let's have a look at futures.
we're going to be down but the not that much. 70 points down for the the dow industrials. now, you've got to look at this. it's a smart home device. or look carefully -- this made a big splash, the tech conference in vegas it is clothes folding machine you stick your unfolded laundry -- you stick unfolded laundry in top of it. seconds later it spits out perfectly folded clothes. we'll tell you when you can get your hands on one and how much it is going to cost. i'll tell you now i want one. i want one for sheets. >> there you go can it do sheets? >> beautiful. we'll see. president trump border wall getting unexpected ally, cher urging nancy pelosi to fund the wall and end the government shutdown. >> this is a cher indicator. [laughter] gone on long enough. >> were you expecting that. that's a shocker. come on. meanwhile eight gop congressman voting yes on to reopen parts of the government which does not have any money to fund the wall.
question, are republicans starting to cave? looks like it. we're on it. more varney after this. got tha. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪
as we said this was a real surprise. cher's message for nancy pelosi, tell me more. >> she is saying tweeting out stop the shutdown nancy before trump does he will be the hero. he'll eat your lunch and steal your lunch don't die in this so effectively saying give the hero give him money for the wall stop the shutdown then you will be the here hero showing this fight has gone on way too long. >> i get it i got you babe. nancy -- thank you you thought i wouldn't catch that. but -- out of touch. i'm not. [laughter] she's your generation. >> she's my generation that's right. [laughter] all right serious stuff, the house has voted to reopen part of the government, that deals with with treasury and irs votes say yes. democrats said yes.
but eight republicans also said yes. and that bill did not have any money in it for the wall. charles hurt is with us fox news contributor washington times editor seems to me that on one hand you have democrats you've got a cracking republican party. the only option now to get something done is for a state of emergency declaration. so that you can open the government and get on with the government business right? >> well what you have -- some crack aring among republicans in the house. but let's not forget you know, the game here is in the senate. and unless republicans start sort of -- flaking off in the senate, i think that you know, i don't think congress is ever going to wind up coming up with what they need to basically call frump's bluff. but look, you know, democrats are -- are operating with the strongest hand that they can come up with but it is porpt to remember they don't control all of congress. they control one-half of congress republicans still
control half had of congress, and entire one-third of the government in the executive branch and so you know, i think it is probably a little bit too soon to declare that -- i think trump are and republicans hold upper hand here. >> here's what i think will happen the president goes down to border today aen sees crisis firsthand he's taken a ton of lawyers with him and wouldn't surprise me to see him declare an emergency right there and then. and then sign a bill to fund the government. reopen the government and walk away. where am i going so wrong on this? >> i think there's a very, very good chance and i think a smart strategy but i -- i still say you know when you stand back and you have people like cher, looking at the situation as -- as let's say ill informed as i think she probably is about everything. to have even -- she realizes the big picture on
on ticks are so much in president trump's advantage this is such a winner for president trump and such a loser for nancy pelosi and democrats because they are against border security. against border security and ignoring that there's even a crisis at the border accusing trump of having manufactured this crisis. the vast majority of americans don't believe that this is a manufactured crisis. well it is a manufactured crisis in the congress me gleblghted to do its job for 30 years. but, it is a real crisis. it's not something that has been made up, and for -- if cher sees that, i can't help but think that at a some point nancy pelosi and the rest of her democrats don't come -- don't come along on that. >> you realize why i i want declaration of emergency reopen the government, that would mean that president trump could go to confront global elite i want to see it so bad. [laughter] >> the only problem with that is that -- is that now if john kerry were
pet he would love to. i think that donald trump would rather get his teeth cleaned than go -- >> no. no man thrive on krngs and strive out under stage and stick it to him. i can't wait. thank you charles thank you indeed sober up and look at the dow industrials we're down but not that much. 1200 points up in last four days down maybe 80 at the opening bell today. now housing market you have a rough go in 2018. one of the biggest home builders just lowered its forecast for this year, 2019. they say that there's a lot of uncertainty in real estate. so can we expect another rough year? truly top economist coming up next.
one more time down about 808 for dow industrials, about 7 minutes from now. let's get to real estate shall we, cheryl young is with us senior economist at triewl trulia there's a huge delay, so i can't indulge in a conversation with you. so i'll ask you one question and one question only. and you've got a minute to answer it. here it is. what's the outlook for real estate in 2019? go.
[laughter] >> so 2019 we're starting to see changing tide in the housing market. we're starting to see home price growth slow. not going down, slowing, but that's a change for the path few years. we're starting to see home sales slowdown and drop so things are starting to move a little bit more towards buyers than sellers. we're also selling millennials that have not shown up for past few years people were worried when do they start i buying homes and starting to happen an it is going to helicopter to what in 2019 last year millennials really drove that home ownership rate. >> okay so millennials coming back into the market first time home buyers, and we have maybe a return to a buyers market as opposed to sellers market. cheryl, that was it be a three second delay there. you can understand why i can't have a conversation with you. but we really appreciate you
being with us this morning. next time you're on the show, we'll fix the delay. and that is a promise. thanks, cheryl. e-cigarette makeer joule fighting back against criticism that they're geared towards teenagers. so tell me ash -- >> they're changing style of their ads now big focus is the change adults from regular cigarettes to e-cigarettes. in the past, they've done commercials that you could argue were geared towards the youth. but it showed colorful, with energized commercials filled with as they say trendy looking young people that's all gone away and comparatively sober and adult subjects. so people like me on -- [laughter] >> with issues with stew. yeah. okay. having attractive old but i don't smoke. i don't use tobacco. really i don't. i'm sure years and years and years. quick check on the market because we open in four minutes time. down about 70 on the dow.
down about 37 on the nasdaq. we'll be back. so i got an offer on the business, and now i'm thinking... i'd like to retire early. oh, that's great sarah. let's talk about this when we meet next week. how did edward jones come to manage a trillion dollars in assets under care? jay. sarah. so i have a few thoughts on that early retirement... by focusing our mind on whatever's on yours.
that for last four trading sessions the dow has been up about 1200 points so you could expect something of a pullback at the opening bell and i think that's what we're going to get. 5 seconds to go we'll find out for sure 3, 2, 1 boom off we go 9:30 on a thursday morning and we have opened down 68, down 90. down 94. 91, the vast majority of the dow 30 by the way, are in the red as our viewers can see on l. side of the screen ready listeners we have got about 6 less than that about 20 of the dow 30 in red as we open up and off 88 points in the very early going. that's roughly one-third of one percent. how about the s&p 500? where is that? in the very early going, it is down a half percentage point of impact and as for nasdaq capacity that indicator is down, well a bit more than that about three quarters of one percent so there's some selling in technology this morning. quick check of interest rates the tenure treasury yield now is
2.70%. and the big tech names you've got to check them. that's where money is. all of them down apple is down a buck. amazon in the news for bay bezos down, alphabet down and michelle and scott martin elizabeth macdonald and ashley webster i want to start with amazon and bezos divorce his wife if she end up with half of his share ownership. she would have 8% -- a lot. what impact on the the economy? >> company. but i encourage investors to hold it before we away with conclusion we have no idea how everything will turn out we don't know how she's going to act been in amazon for a long too many so probably her best interest is to actually see things that are positive for amazon not negative for amazon. >> however, in a divorce sips of
this kind an adultery is alleged on the part of jeff bezos common court response so you split everything. 50/50. so she would get 65 billion dollars worth of -- >> a lot of money in the stock she would be in a position to affect the running of the company. is that correct? >> would that hurt her own shares? right because jeff bezos is face of the company. and they could maybe go to the lawyer to restructure the voting rights of the shares. >> sure can. right okay so -- that's possible. two very smart people. jeff bezos and his wife. scott martin come into this please we're suggesting that maybe this divorce is a negative for amazon the stock and maybe the run of the company may be what say you? >> i think it is a nothing. i think like you guys point the out her wealth and her riches is tied to the company and the well run nature of it in the fact that it is also built up she's got very good allee swrens to company over years given what it has done for her and her family so in my opinion it would be in
her best interest like you said restructure voting rights or make sure she doesn't get in the way of what amazon is doing because they're a juggernaut. maybe different ideas on the strategy for amazon going forward. that would make a difference, scott. >> it would, and that could be a good thing too because look at this success amazon had up to this point now you make a good point it depends how much involvement she wants to have given what we've heard surface what bezos has been up to in the last couple of l year being married and having somethings on the, so to speak, depending what she sees on the campaign but based on so far okay for the thing itself. let's turn to profit because that is a factor in current marketplace but kick it off next week we kick off profit reporting season. wall street expecting a gain of about 16% compared to this time last year. michelle, that's a great number it is a big number. a big number and you know we should discount it it is path
looking and a forward looking but even when we're follow looking stuart numbers come in about 8% which is well above 7% averages. so i think we should be extremely excited about these numbers. >> okay. scott martin, though, you're not excited about these profit expectations are you? >> well, numbers are great as michelle pointed out. but they are backward looking here's the thing guys i think real issue is mid-quarter i'm sorry mid-year earnings reports on the quarterly side because this is a quarter where i think that market already expects impacts from tariffs. that expects less consumer spending and outis look going forward for consumers because of the fact that we have the tariffs implication we've had. you know really difficult now coming out in next couple of quarters to me this is the last really good quarterly earnings numbers we're going to have before we with see some challenges into mid-year. >> got it. but small gap stock are a blowout year to have double digit year throughout 2019 even
if you don't like large but small cap will show impressive numbers here. >> you've been bullish for a long time here. >> not always a bull but 9 9 of the time. markets go up over time he's right. >> i'll try to remember that. tesla, fake a look at that. it is getting rid of less expensive model you've got to tell me. >> basic model on the model s and model x. as of right now, the tweet coming from elon musk not explaining why produce high end version of the s and x will go now for 94,000 that's a price going to pay for that. the suv at 97,000. they think this is method maybe to push more people towards model three sedan supposed to be more massive fuel one. and even the molds three with bells and whistles is at 67,000 not cheap. but no reason given by that because why they're dumping basic model of the s and x. >> down 5 bucks on 333 dollar stock so not a huge reaction
there. check the big board we're now down, 130 points, 128 to be precise that is a half percentage point look at bed, bath and yongd. now there's a stock that has been just taken to the cleaners recently. but they've come out with better profits. and a rosier outlook bed bath and beyond is up what is it again? up 5% trying to get that on screen for you. but it is up 5% we've got that. how about kb homes they build new homes and they expect to increase number of homes they build this year well market is not -- well market is doing nothing. [laughter] it is up 2 cents at 22 dollars share. how about price of oil this morning. where are we? 5167 no real impact on stock market i don't think. the price of gas actually moved up. a fraction of a cent overnight. yeah. to hear that -- it is about the second time in 91 days that we've gone up instead of down. >> i love that you know that.
well -- i'm very conscience of the price of gasoline. [laughter] >> amazing. let's get become to retailers and target their sales rose almost l 6% over the holiday but the stock is down 4%. is this because of these expectations thing? >> probably a little bit of expectations but what i really like is about how amazon i know we might talk later in the show how they really build out their retail and so i think that's an extremely positive sign for consumer it is that maybe people are looking to negatively on target right now. they're down 3 buck that's 4.5% on target even though sales between november the fourth and january the 5th we're up 5.7 cents. >> we did beat expectations and guidance was maintained so it wasn't like they lessened their -- >> foot traffic seemed solid there. come on what's beginning on? [laughter] what have you got to say, scott? >> it a nonreaction numbers lood pretty good the stock hasn't bounced tremendously to over christmas but come up some just
like the s&p 500 how we toact own target here guy. i would still think the world is big enough for maybe three big box retailers and if you want to throw amazon in there toolet say that but amazon not big beings and in big box in wal-mart and costco other two of which we own. >> all right we have a new article and it is coming out of the wall street journal and it says nevermind iphone sales, apple's service business really needs some help as well. scott, that seems to me to be a negative for apple stock. >> well, here's the thing. a lot of bad news is already out on apple i can't any of another bad thing somebody will say to apple to drive price down further. think about what's happening in the last month of this stock and company. a lot of that is getting flushed out but you're right the service growth is really what's keeping this company going forward and clearly not hardware like iphone, max and watches. so they've got to buy somebody. it's either square paypal is probably too big and sears
satellite a money loser on their side but another one to pick up to pick up some service revenue in the future. >> here's the proa l article prices is if no growth and priced at ten 1.3 device that's tim cook argument for the service side. negative side is hey had wait a second are you having a senior moment because apple do you go way like h px and dell that all of a sudden shifted into services when you're basically you're, you know, slow growth hardware didn't move. it is a -- one trick pony that's the question about apple. >> well if i'm a long-term investor and most of our viewers are. i think they would buy it. you have to be a buyer here and to look back in the past we've done this with a l where we all freak out that growth has stalled with everyone said it was a disaster and success -- six came along and everyone loved it so who knows next year we could be saying same thing that we love the growth story and we should have brought it in
now so i would be a buyer. okay. ford motor company reportedly layoff in europe, and cutting ahead and what's, this stock never moves but never moves. so what was it -- eight, nine, seven, eight nine that's all that ever happens i can understand them slowing down in europe, and it is dying and american car makers have no luck in europe at all. zero that's regardless of trade fights or anything else that's a graveyard europe is a museum itt is a museum. all right scroll up please i want to see what got next. what do we got next? thank you -- michelle -- [laughter] we have a good-bye next. [laughter] a good-bye. very sorry everybody good-bye scott and michelle thank you very much. check that big board not the low of the day but we're down 118 points. as we speak 23,700 you just heard scott say for you guys later. see you later.
coming up, two of our top market watchers totally changing their outlook after hear hadding jay powell dubbish comments last week they were very bearish now they're buying. gary and dennis both coming up on this program later today. the organizeers of the yellow vest protest have been cause chaos in france. now urging french citizens to start a run on french banks. yep, they say that will force the government to listen to their demands. whew -- playing with fire boys and madison square garden they own knicks, range arers, they're making a big play in video games we're talking e-sports with msg, next hour. did you know with vanishing deductible,
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now president trump is page to reporters right now, this is just before he leaves for his trip to the border in texas. here we know that he's just said this. if the government is still shutdown next week, he will not go to dabos will the government be shutdown next week but that's what president just said an full remarks when he's done speaking and get the tip and play it to you that is a promise. now let's check the big board this is the low of the day. down 144 at this point. 24,700. now let's get to the yellow vest protest in france. they're trying to expand their reach and impact. ash, what's this about about they're going enter their bank account? >> trying to get a run on fresh french banks going in a massive cash withdrawal plan calling it tax collector referendum quote from one of the protesters we get our bread back you're making money with our dough and we're
fed up. at this point doesn't appear to be a major run on theback it was just an idea on social media, that it doesn't appear it the gn a lot of traction french government responded by saying that is counterproductive that's talk and have a series of debate all around different region of france on four subject climate change that's your favorite democrat issue and taxes and public services whether that will do anything to quiet down the protesters we'll see. but yellow vest movement goes on. >> thank you very much ashley. you're welcome. [laughter] >> the main story of the the day surely, the showdown over the border wall. heritage foundation, james, i think he's going to declare a state of emergency. if he does that, with i think it is only way out of the government shutdown border wall impact. what say you? and common sense, and you know how that works with the law but when you read the bill look
there's a difference between a crisis and an emergency, right we agree with the crisis even pelosi said this is humanitarian crisis. but the authority is designed to deal with a emergency which is an unforecasted unknown event and this is certainly known. so ting argument would be is that that's not a appropriate use of the law. >> james. can i -- immediately goes to the court and immediately goes to the court the court puts a say in them and back to shutdown. >> hold on a second james because i just got this from are the president as you may know he's speaking to reporters on his way to the border in texas. and he's just said, if there is no deal, that is a deal to supply money to build the wall and keep -- get government back up and running again if there's no deal he says it would be surprising if i did not declare a state of emergency. i think it is in the cards. now, it is in the a legal question it is a political question we will have done what
he said he was going to do and he could then reopen the government. what do you say? is >> i think that will be right. that could be a, you know, a course of action because or we could go right back to shutdown right because if it goes to the court you can't spend this money so when you read an important point which is this is a long battle it is not a policy debate, and political attacks only end one way with so somebody gets power and they get way everybody backs down or people move on. and moves on to another issue issue we don't know which course is going yet. but this is something that's going to extend for year. it is not just about this particular shutdown. >> okay if this is a fight over a border wall, and it is a fight over border wall, who is winning?
>> this is a battle of bull run who is run aring this is a political struggle that goes on for years, and the problem for the democrats is winning is losing. let's say they win, we don't do a border wall, we don't deal with catch and release we don't deal with any of these problems well then this issue just explodes and what do they do when 10,000 man migrant caravan shows up and starts walking across the border. how do they deal with that next few years and tell americans, there's not a problem here. is that in their live for two with years which is not a problem. so the problem is, if they win, over the long-term they just might really lose really are badly. >> okay. james -- i think we're on the same page. i really think he's going it declare that state of emergency come what had may in the courts or legalism and i think he's going to do it. okay, we're going to get the playback on president remarks any moment now. james thanks for being with us on a very important day appreciate it. thank you sir, before we get to the president's remarks not sure
when they'll come to us but we'll get them i promise. look at the dow 30, 29 are are the in red only one winner and i can't see which it is. what is that? >> that is boeing. boeing is only winner amongst tao 30 and dow at this moment is down 167 points 23,700. a rare honor for elon musk. china offering a green card and a chance at residency. we'll tell you what's going on with that in just a moment. the day after chemo shouldn't mean going back to
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now, we're waiting to get the taped remarks from president trump about the border, about maybe a declaration of emergency at the border. he came out of the white house this morning ho on his way to his border visit. he spoke to reporters we are waiting to get that tape coming in. now, we do have a couple of headlines from what he had to say. number one, he says look if the government reopens at the moment, of course, it is closed if it reopens, he will go to the ultrahigh level meeting in the swiss alps i think he was listening to you this morning he was saying want g to there so he's like responding to that i t
him to get over there and take it to elite thank you very much. so that's point number one that we already know from the president's remarks. point number two, he said look if there's no deal that will be no deal on funding a border wall, no deal to get the government reopened, if there is no deal he says, it would be surprising if i did not their a state of emergency. because by saturday, it will be i think, tied with the longest and i don't know if either side wants that you know tight you know so question is is the ticktock here he comes back, he signs this state of national emergency. we don't know that and it is theoretical right now, and he get this shutdown stopped. can he by law use money appropriated to the army corps of engineer and defense department to anything about security on the border? he possibly could there may be loopholes there.
>> the judge napolitano said no. >> but he could fight i'm seeing the law pif a different take on what the judge is saying he possibly could fight it in court. given the loopholes in 1982 law in a 2016 law there's a possibility he could fight it with way laws are are written because he could go at it. >> here's the ticktock he goes to the border. he sees the crisis and i'm sure there will be presented to him a crisis on the border. he says this is intolerable give me a deal to build the wall. they say no there's no deal. they're understand so he'll sign the emergency declaration and as soon as he does that he's able to sign a bill, a spending bill from congress reoh the government. impasse over, then it is the courts decide what do you do with the state of emergency. that is a way out. so i think it is the only way out quite frankly. okay we've got the the tape we're about to put it into the machine or how do we do these things i don't know bag in the
old days. look for the button. five, four, three -- here we go. roll it. so we're going to texas. we're going to the border. just hope to my friend in arizona we have tremendous are support the reallies are extremely united they want to see things happen but they're extremely united i don't think i've ever seen unity like this in the republican party. the media which i call the on decision party a lot of media -- in coordination with the democrats they're not talking about the democrats, for instance, this morning a number of people kale out and said you do need very strong border security that includes a wall or whatever it is. a number of democrats say that but people don't like to report on it. we have tremendous wriewnty as
republican party it is really a beautiful thing to see. i don't think there will be a border security but we have to have it and only way you're going to have border security there's only one way. you can have all of the technology in the world i'm a professional of technology but if you don't have a steel barrier or a wall, of some kind, strong powerful, you're going to have human trafficking. you're going to have drugs pouring across the border. you're going to ms-13 pane gang coming in and we've done record apprehensions we're doing a great job few we with need help if we have the wall we could have have far fewer people working in terms of border security and doing an even better job. so if we have the wall, we could have a tremendous savings i would -- i really believe the steel barrier or wall would pay for
itself every three or four month and maybe even better that in terms of overall. so that's it. just the couple of things because i know the fake news likes to say it. when during the campaign, i would say mexico is going to pay for it. obviously i never said this, never meant they will write out a check. i said they will pay for it. they are. they are paying for it with the incredible deal we made called the united states mexico canada, usmca deal. it's a trade deal. it has to be approved by congress. it probably will be other than maybe they even hold that up because they want to have, you know, they want to do as much harm as they can only because of the 2020 presidential election. so mexico is paying for the wall indirectly. and when i said mexico will pay for the wall in front of thousands and thousands of people obviously they're not
going to write a check. but they are paying for the wall indirectly. many, many times over by the really great trade deal we just made. congress has to approve the deal reporter: are you going to davos or are you going to cancel it? >> well i intended to go to speak in front of the world financial community in davos. that is still on but if the shutdown continues, which is in a while from now, if the shutdown continues i won't go. i had planned to go. it has been very successful. when i went, we have a great story to tell. we have the best job numbers we ever had in many ways. certainly with african-americans, with hispanics, with asian-americans, and overall we have the best job numbers in at least 50 years. we have a lot of great things happening. the economy is incredible. we're negotiating and having
tremendous success with china. and i find china frankly in many ways to be far more honorable than crying chuck and nancy, i really do. i think china is actually much easier to deal with than the opposition party. [shouting questions] reporter: given how the meeting went yesterday, are you going to decide is to declare a national emergency? is that the only option left? >> i have a the right to declare a national emergency. the lawyers have so advised me. i am not prepared to do that yet, but i have the right to declare. this was passed by congress. when you say it wasn't passed by congress, it was. other presidents used it. some fairly often. i have the absolute right to declare a national emergency. i haven't done it yet. i may do it. if this doesn't work out,
probably i will do it. i would almost say definitely. reporter: is this a true national emergency? >> this is a national emergency. reporter: if this is a true national emergency, why haven't you declared the national emergency already? >> because i would like to do a deal with congress. it makes sense to do it through congress. the easy route for me to call a national emergency and do it and i will tell you, this is a tremendous crisis at the border. look at president obama's statements from the past. numerous statements where he calls it a crisis. this is a crisis. you have human trafficking. you have drugs. you have criminals coming in. you have gangs, ms-13, we're taking them out by the thousands and bringing them back. this is a crisis. they don't come in at the checkpoint which they do also but they go in between the checkpoints where you don't have any barriers. go ahead. reporter: if it is national emergency, if this doesn't work
out, don't get an agreement or you will do it, or thinking about it? >> if we don't make a deal, i would say 100% but i don't want to say 100% because maybe something else comes up. if we don't make a deal i would say it would be very surprising to me that i would not declare a national emergency and just fund it through the various mechanisms. and by the way, there is more than one mechanism. there is various mechanisms. and the lawyers tell me 100%. it would be nice if we could make a deal but dealing with these people is ridiculous. i don't know if they know how to make a deal. it is, we need, and i'll tell you what, a lot of democrats, i was looking at numbers, a lot of democrats agree, steve, we need national security. and the only way you have it, the only way you have it, is you have to have a strong border. and only way you have a strong
border, you need a wall, or need some kind of a steel -- go ahead. corridor. you need a steel barrier. if you don't have a steel barrier or a concrete wall, forget it. reporter: pictures this morning showing steel barrier wall being walked saw through it. what good is a steel wall if they can saw through it? >> that is a wall designed by previous administration. nothing can't be penetrated but you fix it. it's a very difficult thing to do. that is a wall. we have other walls. we have many walls under consideration. even concrete. there is acid that can go through concrete but what you do you fix it. and it is very much limits. it is very, very hard. the wall that we're doing is very, very hard to penetrate. reporter: mr. president you walked out on the democrats. are you going to bring them back? how can you get a deal if you're not talking? >> the news incorrectly reported
because i said well, if we go back and everything is peachy, dorey we'll talk over 30 days, at the end of 30 days are you going to give us great border security which include as wall or a steel barrier? she said no. i didn't pound on the tables. i didn't raise my voice. that was a lie. what you should do is give them pinocchios. if you ask mike pence, and you ask kevin mccarthy, you ask anybody in the room, they will say, because i know if i do that, you're going to report it, but you nice report it anyway because you're fake news. let me say something. i very calmly said, if you're not going to give us strong borders, bye-bye. and i left. i didn't rant. i didn't rave like you reported. like i mean some of the newspapers, schumer always has a standard lie. he had a temper tantrum.
i don't have temper tantrums. i really don't. it plays to the narrative but it's a lie. i calmly walked out of the room. i didn't smash the table. i should have but i didn't smash the table. that is the story. all of that, wait, all of that narrative is a lie. reporter: how are you going to deal if you're not talking to them. you walk the out. are you bringing them back? >> i think there is far more pressure on them because the people of our country want security. we want to be a secure country. we don't want drugs pouring in. most of our drugs come in through the southern border. they don't come in through the portals. they come in between the portals where you have no barrier. [[inaudible] >> say it? reporter: [inaudible] >> you know who has more human pain? the parents of people who had children killed by an illegal immigrant never been in the
country. you know who has more human pain? the husband that lost the wife or wife that lost the husband, to an illegal immigrant that came five or six times. that shouldn't be here. the people will be paid, a little bit later, those people, many of them are on my side. they want to see border security. by the way, nbc may be, nbc may be the dishonest reporters of all time. [shouting questions] [inaudible] >> i have no idea what they're doing. go ahead. next question? what? [inaudible] i can't hear you. reporter: [inaudible] >> we have plenty of funds if
there is national emergency. there is a lot of funds. i just want to say, if we declare, if we declare a national emergency, we have a tremendous amount of funds, tremendous. if we want to do that, if we want to go that route. again there is no reason why we can't come to a deal. but you have another side that doesn't care about border security. the democrats, which i've been saying all along, they don't give a damn about crime. they don't care about crime. they don't care about gang members coming in and stabbing people and cutting people up. they don't care about crime. if they are not going to care about crime, i agree they shouldn't do anything at the border. but i care about crime and i care about drugs. we're spending a fortune on trying to stop drugs and they pour in through the border. but i see it more now than ever before. the democrats don't care about the border and they don't care
about crime. [shouting questions] >> say it. say it. reporter: emergency on the border, when did this crisis begin? >> ask president obama. he called it a crisis at border. he said it in 2014. you can all play cute. 80% of you are possibly in coordination with the opposition party. i mean the whole thing is ridiculous. all you have to do is look at the borders. rent a helicopter, except you don't want to know the truth. watch. by the way, here is the story. there is another major caravan forming, right now, in honduras. and so far we're trying to break it up. but so far it is bigger than anything we've seen. and a drone isn't going to stop it. and a sensor isn't going to stop
it. but you know what is going to stop it in its tracks? a nice, powerful wall. [shouting questions] reporter: [inaudible] >> the buck stops with everybody. they can solve this problem in literally 15 minutes. we could be back, we could have border security. they could stop this problem in 15 minutes. if they wanted to. i really believe now, that they don't want to. i really believe that i really believe that they don't care about crime. i really believe this. the democrats don't care about crime. they have been taken over by a group of young people who frankly in some cases i've been watching, i actually think they're crazy. but they have been taken over by a group that is so far left, i really don't think they care about crime. you know, sadly, they're viewing this as the beginning of the 2020 presidential race.
and that is okay with me. but they have been taken over by a group of people that don't care about gangs, they don't care about human trafficking and drugs. they don't care about anything. i'll tell you what, they have gone crazy. [shouting questions] reporter: how much longer is the shut down going to last? >> we have to get a win or i have to go national security. one or the other. either we're going to win, either we're going to win or make a compromise. i'm okay to making compromise. compromise is in my vocabulary very strongly. we'll either have a win, make a compromise, because i think a compromise is win for everybody, or i will declare a national emergency. reporter: mr. president -- >> very, very, this is a thing that the lawyers tell me is
100%. we just have to read the language. just read the language. reporter: mr. president, special counsel final report, will you make it public? >> we'll have to see. there is no collusion whatsoever. we'll have to see. reporter: [inaudible] >> no, i didn't know anything about it. i didn't know anything about it. reporter: mr. re-- any reaction to jeff bows' divorce and -- >> i wish him luck. it will be a beauty. stuart: there you heard it, president of the united states right before he leaves to go visit the border in texas. brief word with reporters as he usually does. let me summarize some of what he had to say right there. number one, he said he has the, the president has the absolute right to declare a national emergency. number two. he said probably i will do it,
declare a national emergency, if there is no deal with the opposition. that would be nancy pelosi and chuck schumer on money for the wall and money to reopen the government. he did say, categorically, if there is no deal, and we can't compromise, we will is a to declare a national emergency. most of what the president had to say revolved around a national emergency on the border. one last point, i think he broke some news right there. he said, another major caravan is forming in honduras. we're trying to stop it. the best way to stop it is with a steel barrier, or a wall. another major caravan is forming in honduras, the likes which we've not seen before. ashley: yes, exactly. one of the things he said at the end, talked about compromise, perhaps a little bit after compromise. compromise is a popular word in my vocabulary, but if we can't get a deal and we can't compromise i will declare a
national state of emergency. very clear. stuart: that is a statement, i will declare a national emergency. liz: he said much easier to the chinese, more honorable than chuck and nancy pelosi. dealing with them is ridiculous. i don't know if they know how to make a deal. here's the thing. if they don't get a deal, then they don't get daca dreamers, right? remember, january last year, there was a 25 billion-dollar deal that the democrats were talking about, chuck schumer, with president trump, 1.3 million daca dreamers could get some kind of a green card. went to 1.8. that was over. if they fail here, the democrats don't get daca dreamers, they're done. and if trump does the national security, that appeals to his base, he comes out possibly a winner. his poll numbers could pop. stuart: just a little color commentary here. the president did say china is more honorable than crying chuck. a direct quote from the president of the united states. rather provocative i would say.
general jack keane, retired four-star general. army vice chief of staff. general, great day to have you on the show. welcome. >> glad to here, stuart. stuart: would you approve of military money used in a emergency situation to build a wall? >> here's what i think. i do believe we have a national security issue, if you got 2,000 people per day attempting to penetrate your border and 17,000 of them last year were apprehended last year as being criminals, we don't know how many are suspected terrorists. i think that number is relatively low but the director of homeland security is not releasing that number for classified reasons. we'll leave that up to her judgment. i think this thing comes down to, is this really a national emergency and in the past, in my own reading of this, the congress of the united states certainly has given the president, as have the courts,
wide latitude to determine what is a national emergency. as a matter of fact, the congress has 123 statutes where it relegates power to the president to use a national emergency as a basis to implement some kind of action to protect the american people. so there is a lot of latitude here for the president to take. obviously i'm not a lawyer. this will be fought out likely in a court system. that is why we have judges to determine the merits of it. stuart: but, general, it would be a way out. at the moment, we've got a total impasse on funding the wall and reopening the government. the way to get through that impasse is, is a national emergency. at which point, the president make as declaration he could sign a spending bill coming to him from congress without any money from the wall, the government would be reopened. this is, i think, tell me if i'm right here, the only way out of
the impasse? >> that is a way out of it. i think he will go right up to the cliff before he does that. obviously listening to him there, the tone of it, he is a lot closer to taking this action i guess, particularly after yesterday's lack of progress in the meeting. certainly his political opponents have dug their heels in here and, it is amazing to me. i try not to get involved in the politics of it but just from security issue, in and around the green rooms in fox we have had multiple border patrol authorities here, past as well as present and i have not encountered a single one who doesn't have strong views that some kind of barrier is absolutely essential to slow down the penetrators so they can actually apprehend them. it has worked in san diego where it reduced over 90% of those penetrations. it is a major deterrence. there is already close to
1700 miles of fences on a border that stretches over 2,000 miles. a lot of that has to be repaired because it was put up very quickly, it is inadequate. there has to be some additional fencing as well. but everybody in authority believes that this is actually the right course of action to take to protect the sovereignty of the united states. stuart: general, i'm not asking to you take sides, certainly not political sides, but if a declaration of emergency was made by our president, would you stand up and cheer? >> well, i don't know necessarily express those kind of emotions but i do, i do think it is a sobering act. i think the president is motivated by one thing only, that is to protect the sovereignty of this country. i agree with him. he said this short statement maybe a thousand times, if you don't have control of your border, you don't have a country. that has been rampant for a number of years now.
we've got to get control of this border. the good news is also here, is that the mexican authorities in this new administration appears determined to do something about their southern border in a way that the previous administration was not willing to do. if that actually transpires, that will help thicken the defense here. it will be much-needed. stuart: general, jack keane, thanks very much for being with us on a very important day. very good timing on the interview i would say. >> good talking to you, stuart. stuart: thanks very much indeed. by the way we should tell you the market, stock mark competent had no response to the president's remarks at all. all this talk of a national emergency, a deal or otherwise, absolutely no response at all. the dow was down roughly 120. the president's remarks were made public. we're down 125 as we speak. liz: corporate earnings and fed rates. that's it. stuart: i don't think the market really cares about a shutdown of
the government or the border wall question. you're right, it is the fed and profits and china trade. that is what it is about. come on in please, new york congressman lee zeldin, republican from new york state. congressman, you heard what the president had to say there. it sounds to me like this man is on the verge of declaring a national emergency. would you approve of that? >> i would although i don't think that's option a, b, or c, at this point. congress doing its job, that is what is most important. the president is frustrated. he is smart to leave options on the table but just playing it out, if the president wants to make a declaration. then you have some democratic attorney general going to some friendly federal district court judge in some friendly democrat-leaning, left-leaning circuit court of appeals, you're just going to end up with a prolonged battle in the courts where that couldn't really move forward. what moves faster is if over the
course of coming days or weeks, congress actually does its job and does what it needs to do. stuart: congressman, we've been through this before, if congress does its job, okay, okay. there is an impasse here. congress is not going to pass a bill. certainly not the house is not going to pass a bill with any money for the wall. that is what the president demands. the impasse is not going to go away, is it? >> so i, i disagree. you know, you look at what prior authorizations have been put in place. remember 12 years ago the secure fence act became law, passed signing a law. there was dhs amendment a year later. permission is there. congress allocates funding. in the last fiscal year, you had a pot of money that was given to the department of homeland security where you can use authorities from that past law to spend that money on securing the physical barrier between the
united states and mexico. you appropriate that funding level again for fiscal year 19. not enough money but you can use it for it. stuart: nancy pelosi says she won't give a dime for the wall? >> i think that is disingenuous. you could say it is dishonest because of law already in place, even if you continued current fy-18 levels, that actually pelosi would be allocating money used for the wall whether or not she is willing to admit it, but i believe that money should be increased but this whole thing about pelosi saying that maybe she will give a dollar, or she is not going to allocate a dollar, depending what day, who is asking the question, i believe is a fundamentally disingenuous and dishonest claim because of the authorities that are currently there under the law, if the secretary of homeland security determines that she does not, that we do not have operational control over our border. so the authorities are there. i believe even if you continue
the current funding levels from fy-18, looking multiple billion dollars over two years that could be used to improve our physical barrier. the president, the emergency declaration is something that he has on the table. it is something they can use but i would just, caution against using it where we feel like, that day two, that we're going to be any further along than day one because of a prolonged court process that probably would have to go up to the united states supreme court before you are able to move forward with it. stuart: i think it is crunch time, congressman. congressman lee zeldin, republican from new york. always appreciate you being with us. >> thank you, stu. stuart: let me repeat the market showed no response to what the president had to say, but i do notice it has come back a lot, just in the last five minutes. ashley: it has. stuart: we were down 125. now we're down 79. i don't want to read too much into that. but it is market movement. we should check in with gary
kaltbaum, kaltbaum capital management president. welcome to the program. i don't want to talk to but the border wall, declaration of emergency. i want to talk to but the stock market because you have now turned a little bit more bullish. for a long time you've been against buying any stocks. get rid of them you were saying. now you have changed. why? >> actually, it was live on air with ashley last friday when jay powell mentioned that he was basically watching markets now. and i've been watching the fed for 10 years and every time the fed got behind markets it was folly to be bearish. after 5,000 dow points being bearish, being stretched and extended and the whole world being bearish i thought it was time to just change the stance. i'm not wildly bullish. i don't think we have a big bull market coming but i definitely think there is opportunity now but you've got to wait for earnings. as you see today, macy's, l brands, american airlines a couple of other retailers are getting smacked because of
lowering guidance. i'm sitting back being very patient here, looking for things as we get to earnings. definitely feeling better what i'm seeing. stuart: got it. i can't resist asking the question. do you think it would make any difference to the stock market if indeed the president declared a state of emergency and signed a, some kind of deal that gets the government working again? >> let me put it best. it won't hurt if something gets done and we move forward. look, this is occupying all of our time. it is to me embarassment from both sides of the aisle, that by the way, today our federal government is going to spend $12 billion, every day for the next year, $12 billion. they're haggling over $5 billion over a good period of time. so again, embarrassing. i wish it could get done. i think i'm in the majority we would like to see it over with at this point. especially 800,000 people wanting paycheck this is weekend. stuart: gary, welcome back to the program. i'm sorry you missed your statement on friday. i was otherwise detained in
australia. but i'm glad to be back and i'm glad you're back with us. >> happy new year, stuart. stuart: thank you very much indeed. see you soon, son. >> take care. stuart: we have a lot more to come here on "varney & company." beijing says the latest trade talks with the u.s. were extensive. could a deal be close there? will the shutdown prevent a possible meeting between mr. trump and xi xinping in davos? a lot of speculation about that. we're talking to e-sports. we're talking about later this hour. madison square garden, the company that owns the knicks and rangers, that iconic arena, they have two e-sports teams, did you know that? we're talking to someone from msg about it. >> >> it is the divorce everyone is talking about, amazon's wife jeff bezos -- jay bezos wife, mckenzie, they're breaking up. we'll be right back.
♪ ♪ i am the egg man stuart: we play this once a month. we're allowed, if you play twice a month you have to pay. ashley: funny. stuart: you are the walrus. dow jones industrial average, well we could have back. ladies and gentlemen, 20 minutes ago we were down 126. now we're down what, 48. we're at 23,800. we better check big tech names. they're all down. apple at 152. amazon down 15 bucks. facebook is down. alphabet is down. microsoft is down. amazon is down. and now this.
in the early 1990s, a young jeff bezos was working at an investment firm. he interviewed mckenzie tuttle. she wanted a job. she got it. and the two got together personally. they married in 1993. soon after the wedding, the couple drove to seattle and jeff started an online bookstore, amazon. from that very modest beginning, amazon became the powerhouse of online selling, the most valuable company in the world, and bezos the richest person on the planet, worth about $140 billion. then came yesterday's blockbuster headline. jeff and mckenzie were getting a divorce. there is a backstory here, "the national enquirer" claims to have been following bezos and photographed him in exotic locations with another woman, lauren sanchez, the wife of a powerful hollywood talent agent.
bezos announced the divorce, reportedly when he found out "the enquirer" is about to publish those pictures. the bezos family is entitled to privacy. but they cannot avoid scrutiny of investors. how will the divorce affect the company and how will it affect the stock? jeff bezos owns 16.3% of amazon's shares. by far the largest shareholder, he runs the company. will he still have that authority if he loses half his shares? a 50/50 split is the norm especially where adultery is alleged. if mckenzie walks with her half, what impact will she have on running of the company or the makeup much its board of directors? we rarely cover this kind of story but its impact on this extremely powerful company makes extensive coverage a must. we're not going to moralize, we're going to analyze. millions of people will put their money into amazon. they are entitled to know what happens to their money now. i want more on the divorce, from
a lawyer. joining us dug burns, former federal prosecutor. welcome back to the program. >> thank you, appreciate it. stuart: am i right in saying where adultery is alleged, it is community property state i believe it is then a 50/50 split is perfectly normal? >> yes. it is not even just tied to to adultery. in the state of washington if that is where they file it is a community property state. the reason this is unusual because accumulated bulk of the while he was married. that is not statistically the case. they accumulate ad lot, maybe get into second marriage. the other distinguishing point, the bulk of assets if the stock. that is not usually the case. to make up for the stock point you will get these assets. here it is such a huge amount. now to your point, you're so right, how will that impact the company? i heard people on the show saying, you're right, they could
turn around and adjust shares of stock in terms of voting rights. that is one possibility. stuart: 50/50. >> no question. no question. stuart: she certainly gets half of all this money and this stock? >> yes. but another point was made on your show which is correct, i like it of course, she is not necessarily antagonistic to the interests of the company herself. so i think that will factor in as well. stuart: okay. now, would she have as the owner -- let's suppose she gets 8. whatever it is of the stock. >> 8 million. stuart: that will allow her significant impact on the way the company is run and makeup of the board of directors? >> absolutely, with that sheer raw voting power you're absolutely right. she will have a big impact. to be optimistic. i don't know them obviously, i don't know the personal circumstances but again, i'm willing to be very open-minded that they're going to approach this in a constructive way. the other point i want to make, stuart, i'm sure they consulted
with very sophisticated legal experts ostensibly before they made this announcement and have talked about, you know, some of these issues. you're so right to say, this is a big issue for shareholders of the company of course. stuart: it really nice absolutely. stuart: how will this company go forward? i noticed stock was down, virtually flat yesterday. >> right. stuart: this came out, it is down this morning. >> yes. stuart: that is in over down market anyway. >> may not be because of that news. stuart: i'm not going to impute because of the news. >> we don't know causation of it. stuart: i simply don't know that. but one more point. >> sure. stuart: the division of assets and division of money, it's not written in stone how mckenzie gets the asset. she could get the stock. >> right. stuart: she could get money, right? >> again my broken record point from a minute ago which is very, very often you have some other substitute. i will use a dopey example. i give you this painting worth $8 million. the bulk of vast majority of
money in the stock. may not be, really don't know, i haven't studied all the financials. it may not be substitute assets. it may come down to the stock. tying back to your original thesis may affect the company. stuart: sure likes like it. >> my pleasure. stuart: always appreciate it. good stuff. i will move completely away from divorce headlines or concept of national emergency on the border. i want to talk the economy. brian dem. tric, laffer center for economics. wonderful title. are you still positive about economic growth this current year, 2019? >> you brett i am. we still have a corporate tax rate that brought the day down from 35 to 21. that is a completely new structure for investment possibilities. the big investors in this country are really moving forward with all kind of projects. if we get a good trade deal to china, hello to 4% growth again. stuart: wait a second. we were told it was a sugar
high. you get tax cuts early last year, 2018. the effect is apparent in 2018, then it is gone. it is a sugar high. you reject that completely? >> that is how keynesians always misdiagnose tax cuts. they say they are demand side when they are supply side. this was not a marginal tax cut or tax rebate or expansion of exemptions or deductions. it didn't put more money if people's pockets for a sugar high. no. it changed the structure of production. it made all investment more profitable because of the corporate rate cut. that means it will continue into the future. stuart: you say we may look at 4% growth this year, if we get a trade deal with china. say it glen. go ahead. >> i will say that again. we'll see 4% growth this year if we get a really good trade deal with china then percolates with other trading deals with major partners. wall street is going way past 30,000 if there is resumption of
free trade under auspice of tax cuts and deregulation. that is the entire reagan policy mix everyone has been yearning for since the 1980s. we'll see a economy and earnings like then. stuart: you say that is the result of a good, solid trade deal with china? >> i am a little worried donald trump has been protectionist since the 1980s and he has to find his inner self that he really loves american economic growth. if you need to push the chinese around on subsidies and intellectual property, please do but the bottom line has got to be that we're going to have the free flow of goods and services where they need to be for there to be global prosperity. stuart: brian, we love what you got to say. 4% growth and a 30,000 on the dow, if we get a really good trade dale with china. brian, always a pleasure. thank you for being with us, this morning. much obliged to you. >> thanks, stuart. stuart: another headwind for apple. "wall street journal" has a article, new article. it says iphone sales are not apple's only problem.
its service sector, that need as boost as well. what is this all about. explain it, will you. liz: because business taste and consumer taste in the service sector can change rapidly. so the argument in the "wall street journal" story was is this. the services business is still small. it is growing rapidly. is it enough to basically help out with the struggling iphone calls. stuart: what is that services businesses? apple services like what? >> itunes and apple tv. here is what apple is doing, watch this. apple had this closed ecosphere for products. you couldn't get anywhere else. now it is putting apple itunes on samsung tvs. amazon's echo could have itunes in the future. is it breaking open to finally make more services revenue? could be a new thing. get apple elsewhere, not just on apple devices. stuart: the stock is down about
1.51. the overall market is down. i got to say that. president trump is headed to the border. he will look at the crisis he calls it. he will look at it first-hand. he will talk with one of the local officials that will lead trump's tour. what he wants from the president and what the president is actually going to see. first off, world economic forum in davos less than two weeks away. mr. trump will not attend if the government is shut down, but if a deal is made, he does go, i wonder if china's xi xinping will go as well, announce some kind of a trade deal? pure speculation. i'm doing it. ♪ now i'm thinking...i'd like to retire early. let's talk about this when we meet next week. edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours.
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now this. president trump says he won't to to davos if the government is shut down. if he doesn't go to davos he can't meet xi xinping, even if xi xinping were actually to go there. let's bring in michael pillsbury, hudson institute senior fellow. author of the "the 100 year marathon." all right, michael -- >> this will be a tough question, right? stuart: no it is not actually. not a lot of speculation about president going to davos if the government reopens. president xi xinping is not supposed to be going but he might. there is lots of speculation they will actually go, there will be a joint announcement and everyone will be singing kumbayah. is this a possibility? >> i don't think so, stuart. look closely at the releases both side made after the talks yesterday and again today. they're stressing verification enforcement and the notion that
both sides are tight-lipped. there are no leaks so far. the press is frustrated here in washington and beijing, that they really have no idea what has been agreed to or not agreed to. so you're getting a lot of general comments. way premature for break-through meeting in davos where the two president was actually sign something. stuart: yeah. >> i'm not being pessimistic. the secrecy of the talks is actually good news. it means there actually has been progress and the two side have enough mutual confidence they're keeping the actual progress secret. and there is good reason for that stuart. stuart: so they're keeping things, very, have he quiet. because of that you think that's a good sign for trade talks overall. i understand there are some high-level meetings coming up, is that right, towards the end of this month? almost cabinet level meetings scheduled? >> that is rumor. not authorized disclosure. that is a rumor there is enough
progress thus far in these talks where our team went into the commerce ministry in beijing for 2 1/2 days. enough progress now there could be next level cabinet secretaries meeting, chinese delegation coming here to washington but i think the most important thing is trade negotiations as you know, stuart, for example, with the japanese, often can last three to five years. so this dramatic progress from may, when they exchanged positions, their 10 points and our 24 points, that is only six, seven months ago. already we're in the drafting of an agreement stage. that is dramatic progress. so the secrecy to me means that both side want to not gloat or claim victory and turn off the prospects for further mutual accommodation. that is probably the next step. stuart: i think you may have just broken some news there certainly to me, that they are in a stage of drafting an agreement. i did not know that.
>> i don't think i'm going to be punished for saying that. that has been said by larry kudlow and others, the goal is to change, to transform, if you will, president xi's verbal pledges to president trump in buenos aires into a written document enforceable and verifiable. that has been, it is known by logic, shall we say. stuart: i'm very sorry i didn't keep up with the news. i'm very sorry. here's one thing, which i don't think it is possible. i don't think it is possible the two sides walk away with total disagreement, disliking each other, no handshake, nothing at all, nothing at all comes out. that is impossible. that cannot happen. >> worst case outcome is definitely ruled out now. that is really the news of the day. these two statements released by both sides to me suggest progress for sure. what is probably going to happen next, just looking at past trade
negotiations, especially involving ambassador bob lighthizer, what happens next, separating areas of disagreements that cabinet secretaries and two presidents will have to work on from the two areas agreed to already. stuart: michael pillsbury, great having you on the show because you know what is going on there and that's great stuff. weil see you again soon, thank you. >> i didn't use chinese today, stuart. stuart: thank you very much anyway. [laughter]. now look, this is a story we brought you many times on the program, the video gaming revolution. that is what it is. stadiums filled with people, not watching sports but video sports. madison square garden is betting big on it. we've got the story for you, after this. ♪ then went beyond.
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stuart: markets have come all the way back to virtual break even point. we're only down 15 points. we've come back 100 points in about the last 30 minutes. now this big stuff, madison square garden, that is the company that owns the new york knicks, the new york rangers and of course is the world's most famous arena. what you may not know is it is also very big in e-sports, that
is video games. we have the senior vice president for msg sports and she joins us now. welcome to the show. >> thank you, stuart. stuart: explain how big of a deal this is. you have two e-sports teams at msg? >> we have two franchises. counterlogic gaming and knicks gaming. believe it or not tied in with the nba. stuart: you put on tournaments at attended by thousands of people watching games on big screens? >> it is pretty crazy. there was a big event in 2015. it was the championship, and we hosted it at the garden that was moment question said look, this is something we need to consider. very avid fan base. very passionate fan base.
great demographic. people, it is definitely a global game. stuart: so three years ago you were filling, i didn't know anything about this, filling madison square garden with pay customers? >> yes. stuart: you were steaming this? >> we were? stuart: all around the world? >> yes. stuart: you make money out of that? >> oh, yeah. better believe it. you guys are in the business, right. stuart: yes, we are. >> it is interesting because e-sports, instead of being on espn or fox, right, it is on twitch. and it is on youtube. so it is a virtual audience but it is a global audience the viewership is completely off the charts. stuart: who sponsors this? you make money off response source as well? >> absolutely. interesting thing we got into the business, got into partners with the knicks and rangers with madison square garden they were excited when when he did it. just like you, they didn't know much about e-sports.
our partners truth us. we educate about what e-sports is all about. what is the best way to tap into our fan base. a lot came on square space, jerseys on the knicks, on the knicks gaming jerseys. spectrum, our great partner, they actually sponsor the gaming lounge. like, pepsi, i was at the performance center last week, pepsi products are everywhere. this is our partners, are engaging with us and our e-sports franchises. stuart: you have the demographic to die for. >> yeah. stuart: the principle audience of esports contest, is what young men and young women from what, like 20 to 30? >> absolutely. the wheelhouse is 18 to 25. so, this is -- stuart: we would die for that. >> i heard that the demographic spikes when we talk about e-sports on fox. so i hope that -- stuart: doing okay, yeah. >> do you think that is why you're on the show? >> i might vent you are a yes. stuart: to me, i always think
epicenter of e-sports phenomenon is south korea, right? >> yes. "league of legends" is huge in korea. we brought in a strategic coach from korea to help our team and assist our head coach. it is massive there. viewership is huge. in china it is incredible this is big business. stuart: we like to hear about big and expanding, successful businesses you brought us the story. why don't you come back at some length, give awe better commercial? >> well, we even talked about when i went to the darby county, versus nottingham forest -- ashley: oh. >> come back and talk about that. stuart: you're not careful, we will. ashley: good for you. stuart: kristin, good stuff. thanks for joining us. we will see you again. >> thank you. stuart: now this, the president, well he is right now headed to the border. as he gets closer to a decision whether or not to declare a national emergency. i think he should do that.
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stuart: still made him a government shutdown. stalemate on the wall. is there a way out? yes there is. the president said he will declare a national emergency if he has to appear to close to an emergency declaration. he told reporters i have the absolute right to do national emergency if i want. my threshold will be if i can't make a deal with people that are unreasonable. wow, that's where we are. senator schumer and speaker pelosi are intransigent. they will not budge.
even china in is easier to deal with it more honorable than chuck schumer and the republicans are wobbling. eight house republicans in favor of a funding bill and the government shutdown drags on. here's my opinion. declare an emergency appeared at the president did not come he can find a spending bill to get the government running again and still build a wall by getting the money elsewhere. that is a way out. of course there will be to pay for the left and the lawyers would have a field day, that the imposter be broken and at long last we would have a policy in a plan to deal with what is clearly a crisis on the border. he's on his way there now. he will see the crisis first-hand. as he sank him if he doesn't get a deal to build the wall he will go that route. that is declare a national emergency and frankly i hope he does. the third hour of "varney & company" is about to begin.
♪ stuart: all right, i hope you heard me they are. he can and i think you should declare an emergency. what say you, liz? trade for it would show that the president is motivated to protect the country and democrats are motivated by what. democrats could lose a daca deal. i'm not an expert. i don't know, but he also said i've talked to my lawyers. there is a way to do it. stuart: you are right about this daca deal. nancy pelosi has completely missed the opportunity. and they get nothing. ashley: anyone who argues this is in a crisis doesn't know what they're talking about. i talked to people when i lived
there. what it was like before they put a ball in. it was terrible. scores more would get through everyday. completely contained. still people trying to get through but the wall provided the key barrier. the president says it's not a made-up crisis. it's absolutely true. stuart: when he came out this morning on its way to the border meeting, he talked to reporters and he said categorically, if there is no deal, i will have to declare a national emergency. liz: it also shows the democrats have been lost in this eco-chamber that awol is racist, that it only right in. the people out there in the heartland favored a second, we see the crime and around communities. we see the suffering of children trying to make that crossing and it's dangerous. president obama in 2014 says yes
it is the humanitarian crisis. as the president have a powerful standing here? increasingly by the hour the answer is yes. stuart: i'm going to move on. in 10 minutes will talk to the former mayor of mcallen, texas. he's going to talk to president trump today. i want to know what the president is going to see them not former can tell us. let's get your money. we came all the way back. we were down about 130 at one point. clearly off the lows because her lay down 14 points. dennis gartman, editor and ceo of the gartman letter. dennis, you had been bearish. you say look, don't buy stock. get out of some of the stocks you own. you are saying that until about a week ago. but you change your mind. tell us all about it. >> when the facts change, one has to change. john maynard keynes made that statement when he was asked in bearish on the stock he became
bullish. somebody asked him why he changed in that set the facts and change for the facts in an ape touching on friday. i was very bearish with stocks but when mr. pyle made his statements in the now famous panel that he held with dr. yellen and dr. bernard ken friday that the fed may in fact can did her no longer running down as assets. no longer allowing the adjusted monetary base to continue to decline. at that point to me the fax had changed and you couldn't be sure to stock spirit i'm not overly bullish. i haven't bought any. i'm on some energy. long some banks but i'm also sure the market. the trade only my own accounts i have my own money at risk. right now i'm as natural as can be. any further weakness and i'm going to be a buyer. stuart: if we get another date to be a buyer at that point. does the government shutdown hurt the market the longer it drags on? >> not a question.
deleterious to the economy. southern virginia and hampton roads is a navy area where we have the ship building. we see a slowdown. no question about that as long as it drags on it has a deleterious impact on us, san diego, bremerton, iowa. they will be detrimental to the economy and also disturbs the psychology of the country in general. something has to be done to stop the shutdown to get everybody back to her. i will be helpful. stuart: declaration of national emergency and then find a spending bill and opens up the government again. then you got what she wanted. >> is somebody from the far right i'm really not in favor of the declaration of a crisis. the war in iraq was a crisis. i am really not convinced that this meets crisis material yet.
yes there are the problems of the people coming over the border are detrimental, are serious. but i worry about what precedent it sets. what becomes the next crisis in the future. i'm not a great fan of the expansion of presidential power. stuart: dennis, your big hitter on wall street. you have some clout. you may just move the market because when we started this interview, the dow was down, not much, but it was down. now we are up about 14 points. do you want to take some credit for moving the market? >> not really. i think people would probably scoff at me saying i was polish with stocks rather than supportive of the market. stuart: i've got to tell you i'm the guy who's gung ho to declare a state of emergency. get the government acting business and get on with things. that's where i'm coming from.
>> well, i understand not. i'm always concerned about the tension of presidential power. i'm a believer in limited government and small government in most instances i may just hear what precedent this sets for the future. stuart: okay. come back again soon, please. thank you very much. stuart: president comes to top posts in limbo because of the government shutdown. the president said this morning he's not going to go if the shutdown keeps going. there has been speculation trump would meet in xi jinping with dallas a xi jinping where to go if the president goes. originally scheduled to attend i think it was tuesday. this from a yellow vest protest in france are encouraging supporters to get off a bank -- to set up a bank run by emptying their bank accounts. the act they say they hope that
action will force the french government to listen to their demands especially given -- move on. check the price of oil. where are we this morning? fifty-two dollars per barrel. donate 10 cents. the flight move up the national average for gas prices. it was a bit tiny fraction. wendy laffey not, lives? rubbish. stuart: can you imagine you want to set up and rob a bank. you think that's going to help? liz: and then put your money under the mattress? who cares. stuart: move on sister producer. we see the crisis. he's going to arrive in mcallen, texas in a couple hours at coming up next, live report from the border and will talk to the former mayor of mcallen with the president
today. the house budget committee chair says he is open to a top tax rate of 70%. you heard it right. we're talking to fox news bret baier. we will talk to the rnc. stay with us. it is happening here on the third hour of "varney & company." ♪ at&t provides edge-to-edge intelligence, covering virtually every part of your healthcare business. so that if she has a heart problem & the staff needs to know, they will & they'll drop everything can you take a look at her vitals? & share the data with other specialists yeah, i'm looking at them now. & they'll drop everything hey. & take care of this baby yeah, that procedure seems right. & that one too. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on.
sense or is it to stop it. we know it's going to stop it in its tracks? a nice powerful wall. stuart: the president talking to reporters as he headed towards the border. his winter arrives in mcallen, texas in a couple hours. casey stegall is there. can you tell us what the president will see when they get there? >> she's going to see a whole lot. he's got a lot packed into a short time on the ground. once he arrives, he is going to participate in a roundtable discussion with local leaders that will be focusing on border issues that are more specific to this particular area. you got to remember in this neck of the woods right there behind us the international border is a river and the rio grande river is used 24/7, 365 to bring drugs in human beings into this country illegally. so after that roundtable, the president will then come see the river for himself.
while he's out there he'll be meeting with customs and border protection officials to hear their stories and be brief and then he will head back to the airport. the mayor says it is an honor to host president trump and show him the big picture here. listen. >> we think it's an honor to have a president that they appeared easier for business and everything but we're excited to welcome the president. the challenges of just building a wall. >> protesters are planning to stage a local mall right across from the airport because one of the recurring concern about building the barrier down here is the impact it could potentially have on the environment. lawsuits have been filed to try and stop it. portions of the law would cut through wildlife sanctuaries in the region and many environmental groups have been fighting it. the local sierra club president
here in texas releasing the statement had said is that. the president's hateful agenda in the humanist nation of people are not welcome here in texas or anywhere. u.s. senator ted cruz and john horn and accompanying president trump to the border and senator john corner will be hiding in his own roundtable talking about this very controversial and heated issue once the president the part the region and has backed washington. stuart: kc, thank you very much indeed for your next guest will meet with the president at the border. our next guest richard cortez is a former mayor of mcallen, texas. what are you going to say when you meet him today. >> well, i'll tell him i appreciate the opportunity to meet with him, but i want him to listen to the truth and make decisions based on the best available information to get the highest probability of the
senate. he's going to find nothing that would justify declaring because it just doesn't exist. hopefully this trip will help him get liable information to make reliable decision. stuart: so you don't want to build a wall and you don't want to have a national emergency declared. we want to build a wall where the wall is necessary. for someone to tell that we are going to build a continuous wall. and that is going to guarantee a because we're putting our resources where we don't need it. when it the resources in its legal ports of entry were customs offices are in most of them illicit drugs and problems come from. stuart: the president said this
morning there is another very large, the largest of all caravan now forming in honduras. it will make its way to he says the only way to stop it is not the sensors. it's with a wall. a physical barrier. you disagree with the president? >> absolutely. we onto international bridges and i was therefore admitting then that 2:00 in the afternoon, two young men stood by offense. the lady jumps over the fence, broad daylight. all kinds of officers, both police enforcement, customs, everybody was better than men to lay deeper into the crowd and she was copied for someone to think of physical barrier in itself will stop the illegal crossing is just not true.
i think very yourself, but that's not the solution. tranter richard cortez, former mayor, i'm sure you'll be meeting with the president later on. i want to get back to your money. first of all, the stock is on track for its worst one-day performance ever. he reported what people think of as weak holiday sales. cut their outlook for the future. when you do that come yours doctors down. that's a big drop. the price of gold this morning, $12.89 in the price of one bitcoin is -- $3600. jule, the e. cigarette to switch from traditional cigarettes has been under fire for marketing.
they switch their marketing campaign. starbucks will install needle disposal boxes in some locations. discarded needles have become a problem. several starbucks stores in the started non-paying customers into their stores and into their bathrooms. needle disposal. the back story on the basis divorce. the "national enquirer" claims-based dose was having an affair and that he announced the divorce only when he knew the inquirer was about to reveal -- about to publish revealing photographs. investors are watching closely to what happened to his 16.3% stake in amazon. if you're looking to buy a home this year, there are homes for less than $100,000. that is next. ♪ place, the xfinity xfi gateway.
median price, 66,500. rounding out the top five, cleveland 67 green. buffalo, new york, 778. no comment. there's money to be made in the fashion industry. just as the sky, giorgio, armani. now worth seven points 4 billion. his business empire includes perfume, makeup, restaurants can buy real estate. he spends its money in private homes all over the world including italy, france. seven points 4 billion. here it is. made his debut at the technology show in vegas. stick your unfolded laundry in the top. seconds later it comes out perfectly folded. there's a drawback. they can't fold underwear or socks and the other drawback is you got to stand there and feed the stuff into the machine.
stuart: down ever so slightly. where is that? it is down six points, which is just a fraction down 21%. down a tiny fraction .08 could not or is there is movement in the stock right now. the results will likely have an impact on her money over here. jeff you as it does come ahead of the ubs u.k. investment office. jeff, looks to me at the moment that the vote next tuesday will
go down to defeat the parliament will reject the brexit plan. it is going to be more limited. and secondly, even if we do take into account the impact on the u.s., the u.s.'s main trading partners, mexico, canada, china and all of europe. so if it meets the material decline in european growth expert patient, then there could be an impact but for now i don't think we need to go there again. stuart: i think you're on a limb without one. a lot of people say there will be quite an impact over here. interesting point you raised there. let's suppose there is a
complete brexit. are you saying maybe america can jump in and do a bilateral trade deal with the bread? >> in the event of no deal, then bilateral trade deal between the u.s. and the u.k., that's certainly going to be on the table and it's led many enough faction within parliament is actually banking on. having said that, there are other possibilities which could allow the u.k. to maintain an amicable turn up close trading relationship with the european union and the u.k. at the same time. that's the cherry-picking arguments and hopefully we can still get that at some point in the future. stuart: i read the british press and many say we do a hard brexit and that the bad news situation. but you're taking a very different position, aren't you?
>> i think there's a difference between the short-term and the medium to longer term. yes there will be some degree of uncertainty but a lot of that is in price already. it's an open economy. it will be able to adjust to not the opportunities that the head. so over the medium to longer term, we don't see material change in the u.k. and to be frank nor do our client. stuart: that's a welcome point of view on this program. geoff yu, you that might mess in your very different atmosphere boycott on the show. thank you indeed. he'll be back. i want to get to the china trade talks wrapped up for the week are the two sides reportedly made some progress. dean pinkert is with us. what kind of trade deal at the end of the day do you think were going to get?
>> well, it's going to take some time, but i think that once they get through this initial stage, talking about chinese purchases of u.s. goods, they're going to tackle the structural issues including intellectual property and force technology transfer and they're going to have to have a mechanism for making sure china meet that commitment. stuart: are we going to get a deal like that? >> we will eventually. right now they're making incremental progress. the tone is good. we've seen not just in the quiet and can start a ton of both countries are maintaining in these discussions. there's going to be a move up to a higher level of participants in this discussion and we'll just have to watch what happens between now and march 1st. china agrees to stop using our technology and stop the forced
takeover of technology. that agreement has to be verifiable, doesn't it? >> absolutely. the two countries are going to be looking to see whether they can agree on metrics for success. what you're talking about here is an enhanced rule of law at environment in so that u.s. companies and other companies can feel comfortable doing business there. stuart: one thing that i think most people are discounting is not going to happen and that will be total disagreement. you can see that happening, can you? >> i think that the rubber really hits the road when they start talking about verifying
compliance. i'm sure the u.s. negotiators are going to push an aggressive position on not because there is concern in the past some of these broad pronouncements from china have not been followed through on. stuart: we thank you for joining us this morning. wait and see for march the first to see what turns up. thank you for joining us. appreciate it. this is a story everybody is talking about. that is the jeff bezos divorce. amazon's ownership structure should be affect did. mckenzie bezos could get half of the shares. she could get a percent. trade for it is complicated. it's selling about 6%. reportedly they may not have been a prenup. washington is a community property state split view. would she ask for cash instead and not stop. that's the issue.
tracking s&p filings. no word on amazon on change in ownership but jeff bezos shares. we should point out he owns blue origin in the "washington post" that there's a lot take here. stuart: he has about 80 million shares. a billion dollars worth to find these other entities. they also had jake -- had a huge real estate empire spread out across. it's not going to be easy. most of them are tied up in stock it's a little more complicated. stuart: it's complicated. 40 billion shares. stuart: she would be the richest. tesla apparently making a big impression on china. they've offered him a green card and residency. the groundbreaking of a new gig of fact very. more on tesla.
it will stop selling low-priced versions of the model s. and the model acts. tesla didn't get a very reasoned that if people want one of those they've got to order by sunday. musk says the next-generation tesla roadster will be able to fly. responding to one of his twitter followers who treated this picture of a flying delorean and wrote the new roadster will do something like this. promise the roadster will be ready next year. take a look at tesla stock up 74 cents at $339 a share. crazy long receipts you get it tbs? even when you buy one or two items. a california lawmaker wants to cut down on wasted paper like that. a new bill would force businesses to offer electronic receipts unless customers specifically asked for a paper copy. to make his point a lawmaker
introduced a bill by standing next to a man dressed as a giant paper receipt. if the bill passed it would go into effect in 2022. stuart: how long is the bill? the length of a paper receipt. nothing better to do than not. train for that and running to the tv cameras. stuart: check apple. the new report in the journal says it will work on boosting its business that are to count as blowing iphone sales. the stock is unchanged at 152. target sales rose almost six are sent over the holiday. but the stock is down 3.5%. house budget committee chair john yarmuth says he's open to a top tax rate of 70%. we are going to talk to fox news bret baier enablement. could you ever see that imposed?
down is still going on he would not attend doorposts. roll tape. >> while i attended to go to sub to comment the shutdown continues i won't go. i had planned to go. it's been very successful. we have a great story to tell. the best job numbers we've ever had. certainly with african-americans, hispanics, asian-americans and we have the best job numbers in at least 50 years. we have a lot of great things happening.
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now. it seems to be an awful lot like the president is going to declare his native emergence day. it looks like he's moving in that direction, doesn't it? >> it does only because he doesn't be any movement in the negotiation with congress. there's an effort underway right now led by lindsay graham and others to cobble together some compromise in part by using democrat put forward legislation dealing with border security and getting republicans and democrats to sign much like the gang of eight. the problem is two things. one is that this group manages to get to something, some compromise, there's no guarantee that either mitch mcconnell or nancy pelosi can get their members to sign on to it in this current environment. number two is there's a lot of activity, especially in the house democratic caucus for president trump to the point where they just want to make a
point but is not going to get what he wants. stuart: i think you're right. if he did sign a declaration of emergency, that would be one way out of this government shutdown border wall impasse. we've got an emergency. i'm going to build this thing a different way. he could then find a spending bill that comes to him from congress even if it doesn't contain money for the wall on the impact of the government shutdown will be over. >> true. the illegal sites would not and that will likely take a long time. that will probably take the issue out of way into the 2020 election, which in some aspects the president's supporters say it not a bad thing. he's fighting. he's saying what he was trying to do has this option that congress is preventing him from doing that. it was definitely i think the backup plan should they not move the ball.
i also think democrats really want to get past friday in because remember that the images are going to be much more intense come monday after that paycheck is met tomorrow. stuart: yep, you got it. congressman john llamas says he's the house budget committee chair and he says he is open to congresswoman alexandria ocasio-cortez's proposed 70% top tax rate. bear with me. let's roll tape so our viewers can see it and what he said. roll it. >> i'm fine with lucky not. congresswoman ocasio-cortez wants to make the new deal pay for medicare for all. to accomplish the investments that they make.
he's open to walking down the street and being hit by a bus but he's not going to do it. and it's never going to get through let alone the house, never even introduced in the senate. so i just don't than does the solution. what really is being taught about and it's interesting to hear democrats talk about the national debt and where we are as a country and turning the aircraft carrier the state to deal with the national debt. stuart: that is a huge problem that looms before us. what the democrats in the house are doing is making it clear how they will campaign in 2020. laying out the groundwork. trial run sql and various policy areas and how that will fly in 2020. i think that's what's going on. >> i agree and i think it's a tough sell for that rate. it is tough to sell.
stuart: in the middle of the country but not elsewhere. thanks for joining us. we'll see you tonight at 6:00 eastern fox news. eight house republicans voted to reopen part of the government without border while funding. next, we are talking to the rnc. seems like the gop is cracking. got it. ♪ this is huntsville, alabama. aka, rocket city, usa. this is a very difficult job. failure is not an option. more than half of employees across the country bring financial stress to work. if you're stressed out financially at home, you're going to be too worried to be able to do a good job. i want to be able to offer all of the benefits that keep them satisfied. it is the people that is really the only asset that you have. put your employees on a path to financial wellness with prudential. bring your challenges.
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stuart: the shutdown as in the government shutdown is in its 20th day. eight house republicans voted to reopen part of the government without border while funding. is that a crack in the gop? let's ask spokesperson for the r. in the kaleigh mcenany. it looks like a crack? >> does not look like a crack. you had 1188 voting not to reopen the government. overwhelmingly, and senators who are cracking are the ones who are not always in line with the republican caucus. nothing to see here.
stuart: we disagree on this, i'm sure you saw the president this morning answering reporter questions on his way to texas. it seemed to me like the man was very close to getting towards the point where he would declare a national merchants say. >> i think if this compromise doesn't happen, then a shed. he said he doesn't want to go that route, but he has the power congress has given more than 100 extra powers to the president. military structures using armed forces. he can absolutely use that. adam smith said the president legally in the right if he wants to do this. stuart: he can actually do this. it's not a legal problem if he doesn't. >> democrats legally challenge everything that he can do it. not advisable but they admit they've allocated the power.
stranger things i feel that way out of the impasse to get the government moving again. the only way to get something done on the wall. stuart: democrats are movable. he went from 25 billion to 5 billion. that it doesn't need to be concrete. what have the democrats give in. not one thing. they fit on this number without moving border security. stuart: they think they are winning the political contest. every single poll you look at come immigration is in the top three issues. and it's upwards of 60% in border security is important. more than 50% saying they want a barrier in the southern border. this is why democrats dislike when we talk immigration. stuart: i believe by the end of this end of this day the hover state of emergency. are you with me? going to the border he will
figure out that there is no compromise with the democrats. i think nancy pelosi has just gone public and said no compromise. stuart: it's certainly within their own possibility. i wouldn't doubt that. stuart: you heard it first. kayleigh mcenany, thanks for joining us. a new study reveals the average child allowance rose faster than worker salaries last year. how about that? that's doria for you is not. -- that story for you is next. ♪
allowance rose faster than worker es salary. between the ages of 4 and 14, the average was $471 for the year. that was nine bucks a week. up 4% from the previous year. higher than the annual 3% wage increase given to average worker last year. what do you make of that. 471 bucks. >> that is okay. nine bucks a week. that is not outrageous. stuart: it is not? ashley: am i out on a limb. do you think that is a lot. stuart: you are out on a limb. liz: i am not getting in between this. ashley: nine cents a week? what do you think is good if. stuart: all kinds of comments in my ear from the producers but i will not repeat them. but you're out of line. serious stuff. samsung users say they can't delete facebook from their
phones. some carry facebook preloaded. samsung says says you delete it, we will not collect the data. time's up for me, neil. neil: they are all collecting data. they doth protest too much. we have lot going on here. including shutdown going on 20th day. one more we tied a record. two more we broke a record. goes back to 1995 with newt gingrich bill clinton, and republicans at loggerheads. what that whole crisis started the republicans were deemed to have the edge at the time when it is all started. it is a reminder things can quickly change. the sentiment can quickly change. who is on top, who is getting pr, upper hand, that too can change a little